Saudi Global Ports takes over management of King Abdulaziz Port container terminals

On 1 October 2020, Saudi Global Ports Company (SGP), one of PSA International’s subsidiaries, officially assumed the management of both first and second container terminals at King Abdulaziz Port Dammam (KAPD), Saudi Arabia.

Illustration; Photo by: Mawani

SGP has thus become the sole container terminal operator of the deep-water hinterland port.

The successful handover of the First Container Terminal from Saudi Ports Authority (Mawani) to SGP was achieved in less than six months following the signing of the 30-year build, operate and transfer (BOT) agreement between Mawani and SGP on 13 April 2020.

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Saleh bin Nasser Al-Jasser, Minister of Transport and Chairman of Mawani, described the move as a milestone event within the Saudi Vision 2030 promoting the diversification of the Saudi economy.

“I would like to express my gratitude to the management and working teams from Mawani and SGP for their close partnership. The smooth transition within a short timeline under the pandemic situation is phenomenal,” Abdulla Zamil, Chairman of SGP, commented.

“The positive relationship will be the catalyst to accelerate the developments to elevate the seaport and logistics capabilities of Dammam to support the industrial growth initiatives under Saudi Vision 2030.”

Since the signing of the BOT agreement, Mawani and SGP have worked closely on various activities including manpower retention, transfer of assets, engagement of the port community, and collaboration with stakeholders like Tabadul and Customs Authority. In addition to the transfer of equipment from Mawani, SGP has advanced the purchase and commissioning of more than 200 new handling equipment units to facilitate smooth operations at both terminals.

Saad Alkhalb, Mawani’s President, said that the transition was very successful and expressed his confidence that SGP will continue to raise the performance and customer service levels across both terminals, investing and developing key infrastructure and focusing on environmentally friendly and technologically advanced systems.

Specifically, SGP’s development and modernisation plans will integrate both container terminals into a mega container hub, capable of competing globally and becoming well positioned for the future. Once the planned expansion works are fully completed, KAPD’s annual container handling capacity will increase to an estimated 7.5 million TEUs.

SGP’s estimated total investment of more than SAR 7 billion ($1.8 billion) is expected to be the largest seaport investment by a single operator under a public private partnership in the Kingdom of Saudi Arabia.

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